Statistics Canada Reports Lower Industrial and Raw Material Prices for May 2025
Statistics Canada data show that in May 2025, prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), declined by 0.5% from April. The Raw Materials Price Index (RMPI), which tracks the cost of raw materials purchased by Canadian manufacturers, fell by 0.4% during the same period. Over the previous 12 months, Statistics Canada reported the IPPI rose 1.2%, while the RMPI decreased by 2.8%.
The IPPI and RMPI are monthly indexes published by Statistics Canada that track changes in prices received by Canadian manufacturers and paid for raw materials. They help measure trends in production costs and prices set at the factory gate, providing insight into manufacturing cost movements across the country.
In May, Statistics Canada reported the largest decline within the IPPI was in lumber and other wood products, which fell 6.0%. This decrease was mainly due to an 8.8% drop in softwood lumber prices. Statistics Canada noted that lower demand, as buyers waited for potential further price decreases, was a contributing factor. Prices for energy and petroleum products declined 1.9%, largely the result of a 4.8% drop in diesel fuel prices, which was connected to lower costs for conventional crude oil. In contrast, prices for finished motor gasoline rose by 1.6%, which Statistics Canada attributed to higher seasonal demand and unexpected refinery outages in North America that caused temporary supply shortages.
According to Statistics Canada, several product groups experienced price increases that partially offset the overall decline in the IPPI. Prices for meat, fish, and dairy products rose 1.2% in May, marking a sixth consecutive monthly increase. This was driven primarily by a 4.7% increase in fresh and frozen beef and veal, driven by strong seasonal demand and limited cattle supply. The price of primary non-ferrous metal products increased by 0.9%, mainly due to a 1.6% rise in unwrought gold, silver, and platinum group metals and their alloys. Statistics Canada reported that unwrought copper and copper alloys increased by 3.0% in May following a significant decrease in April. The agency linked this copper price rebound in part to eased trade tensions between the United States and China after a 90-day tariff pause was announced by the United States in May.
Statistics Canada reported that year over year, unwrought gold and gold alloys contributed most to the IPPI's 1.2% annual increase, rising by 41.7%. Other significant contributors included unwrought silver and silver alloys, up 12.8%, fresh and frozen beef and veal, up 19.5%, and unwrought aluminum and aluminum alloys, up 15.3%. Statistics Canada also reported year-over-year declines in several groups: finished motor gasoline fell 10.2%, diesel fuel decreased 5.9%, and unwrought nickel and nickel alloys dropped 20.4%.
For the RMPI, Statistics Canada stated that the third consecutive monthly decrease was led by a 4.5% decline in crude energy products, including a 4.3% fall in conventional crude oil prices. The agency cited concerns about an oversupplied global oil market and production increases announced by OPEC+ as contributing factors. Statistics Canada reported that, excluding crude energy products, the RMPI increased 1.6% in May. Prices for metal ores, concentrates, and scrap increased 1.9%, mainly due to a 2.4% rise in gold, silver, and platinum group metal ores and concentrates. Crop product prices rose by 1.1%; Statistics Canada reported that canola prices increased 6.2% in May as Canadian supplies tightened due to strong export demand.
Annually, Statistics Canada stated that prices for conventional crude oil fell 22.4%, and synthetic crude oil dropped 22.7% compared with May 2024. Statistics Canada reported that prices for nickel ores and concentrates declined 20.4% year over year. The agency said higher prices for gold, silver, and platinum group metal ores and concentrates, up 28.4%, as well as cattle and calves, up 17.5%, and other miscellaneous crop products, up 38.3%, partly offset the annual decline in the RMPI.
Statistics Canada noted that the IPPI reflects the prices manufacturers receive for goods at the factory gate, excluding indirect taxes and distribution costs. The next release of the industrial product and raw materials price indexes, covering June 2025, is scheduled for July 21, 2025.